NEWS ARCHIVE

WA Government outlines pork barrel resources proposal

The WA government has fuelled an investment rumour frenzy and infuriated environmental groups acr...

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The timing of the alleged ‘master plan’ – ahead of February’s state election – the lack of detail and, being based around questionable resource developments, has aroused suspicion the proposal has a flawed business case and is designed to sweeten up both industry and regional stakeholder groups.

The plan is centered on the development of four major industrial projects around the state including the controversial Gorgon Gas Project on Barrow Island, the expansion of Alcoa’s Wagerup alumina refinery in the south west, the construction of a second Dampier to Bunbury Natural Gas Pipeline and another controversial $4 billion aluminium smelter at Kemerton.

All of the projects will still need to pass environmental checks raising the ire of green groups, with the Kemerton smelter idea coming under heavy criticism from lobby groups such as the Alumina Action Alliance (AAA) which has worked against the development of an aluminium smelter in the state’s south west.

“Aluminium smelters have huge energy and water requirements, the south west of WA has precious little of either energy or water,” said AAA convener Neil Bartholomaeus.

“Gas from the Gorgon field will be amongst the most expensive in the world, the only way it could be used to generate electricity for aluminium smelting would be if there was a massive subsidy from taxpayers.”

The new smelter is considered the least likely of the four projects to get the nod while the second gas pipeline, which would run parallel to the existing DBNGP, is essential to the plan.

It is thought the new pipeline would be privately funded although the government has just finished buying land alongside the DBNGP to smooth the way for any construction. Additional gas supplies would also be welcome in Perth which suffered a string of blackouts during the summer due to a gas shortage.

However, approval for the expansion of Alcoa’s Wagerup refinery is considered necessary to justify the cost of building a second 1,600km pipeline.

Possible financial backing for the new pipeline may also be in jeopardy as Alinta has apparently rejoined the sharks circling the Epic Energy carcass, despite the cost of the existing asset being almost double that of developing a new pipeline.

The Gorgon gas field development has been constantly criticised by environmental groups seeking to preserve the A1 environmental habitat on Barrow Island from further development despite the Government giving the proposal in-principle support in August.

All-in-all, confirmation of the overall proposal could generate a delicate battleground for the upcoming state election, with environmental issues fighting power concerns for the hearts of voters.

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